Page 17 - Suncorp

Remuneration policy

The Suncorp Group’s remuneration policy sets out the key objectives of its remuneration strategy. These are to: –– facilitate remuneration structures aligned to the business strategy

–– provide competitive remuneration linked to appropriate internal and external benchmarks

–– provide fair and appropriate remuneration outcomes having regard to the performance of both the Suncorp Group and the individual; and

–– ensure that remuneration arrangements for all employees encourage behaviour that supports the Suncorp Group’s long‑term fnancial soundness and risk management framework.

The Suncorp Group’s risk management practices are governed by an integrated framework including defned risk appetites, Suncorp Group Policies (including the

remuneration policy) and the use of personal scorecards that include specifc measures of performance tied to the relevant risk appetite and risk behaviours. The performance of each Business Unit (and individual) is reviewed and measured with reference to how risk is managed.

This section explains how the key objectives of the remuneration strategy are achieved in practice. Remuneration governance framework

The Suncorp Group’s remuneration policy aims to ensure that remuneration structures for all employees are equitable and are strongly linked to the long‑term interests of the Suncorp Group. While the Board has overall responsibility for employee remuneration structures, the Board relies on its Remuneration Committee to assist in remuneration‑related matters and takes account of the advice of the Group CEO and other members of management.

The following diagram details the remuneration governance framework as it relates to the SLT.

Maintains overall responsibility and accountability for remuneration policy, as well as the principles and processes which give effect to that policy.

Approves, having regard to recommendations of the Remuneration Committee: –– the remuneration of the Group CEO

–– remuneration arrangements for the non-executive directors

–– remuneration arrangements, levels of, appointments to, and terminations from, Senior Executive positions reporting to the Group CEO –– all awards made under the long-term incentive plan –– the Suncorp Group’s STI pool; and

–– the annual increase pool for the Suncorp Group’s total employment cost.

Recommends to the Board:

–– the remuneration of the Group CEO, including performance targets –– remuneration arrangements for non-executive directors

–– appointments to, and terminations from, Senior Executive positions reporting to the Group CEO

–– remuneration and human resource policy matters; and –– the structure and operation of equity-based plans.

Endorses and recommends to the Board based on recommendations from the Group CEO:

–– the remuneration arrangements and levels of Senior Executives –– the Suncorp Group’s STI pool; and

–– the annual increase pool for the Suncorp Group’s total employment cost.

Recommends to the Remuneration Committee:

–– the remuneration arrangements and levels of Senior Executives –– the Suncorp Group’s STI pool; and

–– the annual increase pool for the Suncorp Group’s total employment cost. Approves:

–– the performance targets of Senior Executives for the variable component of their remuneration; and

–– the remuneration and performance of Senior Executives.

Support the Remuneration Committee by providing independent advice on matters including:

–– benchmarking data and market practice among other listed companies; –– proposed changes to the Suncorp Group’s remuneration policy, structures and practices;

–– legal and regulatory issues that impact on remuneration arrangements for directors and Senior Executives; and –– structuring alternatives for short and long-term incentive plans.

Page 17 - Suncorp_Review

Page 17 - Suncorp_Review